Q4 2025 Boardwalk REIT Earnings Call

Speaker #1: Good afternoon, ladies and gentlemen, and welcome to the Boardwalk Real Estate Investment Trust Fourth Quarter 2025 Earnings Call. At this time, all lines are in a listen-only mode.

Speaker #1: Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator.

Speaker #1: This call is being recorded today, Friday, February 20, 2026. I would now like to turn the conference over to our first speaker today, Eric Bowers, Vice President of Finance and Investor Relations. Please go ahead.

Speaker #2: Thank you, John, and welcome to the Boardwalk REIT 2025 fourth quarter results conference call. With me here today are Sam Kolias, Chief Executive Officer; James Ha, President; Greg Tinling, our Chief Financial Officer; Samantha Kolias-Gun, Senior VP of Corporate Development and Governance; and Samantha Adams, our Senior VP of Investments.

Eric Bowers: Thank you, John, and welcome to the Boardwalk REIT 2025 Q4 results conference call. With me here today are Sam Kolias, Chief Executive Officer; James Ha, President; Gregg Tinling, our Chief Financial Officer; Samantha Kolias-Gunn, Senior VP of Corporate Development and Governance; and Samantha Adams, our Senior VP of Investments. We would like to acknowledge, on behalf of Boardwalk, the treaties and traditional territories across our operations and express gratitude and respect for the land we are gathered on today and we now know as Canada. We respect indigenous peoples and communities as the original stewards of this land. We come with respect for this land that we are on today, for all the people who have and continue to reside here, and the rich diversity of First Nation, Inuit, and Métis peoples.

Speaker #2: We would like to acknowledge, on behalf of Boardwalk, the treaties and traditional territories across our operations and express gratitude and respect for the land we are gathered on today, and we now know as Canada.

Speaker #2: We respect Indigenous peoples and communities as the original stewards of this land. We come with respect for this land that we are on today, for all the people who have and continue to reside here, and the rich diversity of First Nation, Inuit, and Métis peoples.

Speaker #2: Before we get to our results, please note that this call is being broadly distributed by way of webcast. If you have not already done so, please visit us at bewalk.com/investors, where you will find a link to today's presentation as well as PDF files of the trust financial statements, MD&A, and annual report.

Eric Bowers: Before we get to our results, please note that this call is being broadly distributed by way of webcast. If you have not already done so, please visit us at bwalk.com/investors, where you will find a link to today's presentation, as well as PDF files of the Trust's financial statements, MD&A, and annual report. Starting on slide two, we would like to remind our listeners that certain statements in this call and presentation may be considered forward-looking statements. Although the expectations set forth in such statements are based on reasonable assumptions, Boardwalk's future operations and its actual performance may differ materially from those in any forward-looking statements. Additional information that could cause actual results to differ materially from these statements are detailed in Boardwalk's publicly filed documents. I would like to now turn the call over to Sam Kolias.

Speaker #2: Starting on slide two, we would like to remind our listeners that certain statements in this call and presentation may be considered forward-looking statements. Although the expectations set forth in such statements are based on reasonable assumptions, Boardwalk's future operations and its actual performance may differ materially from those in any forward-looking statements.

Speaker #2: Additional information that could cause actual results to differ materially from these statements is detailed in Boardwalk's publicly filed documents. I would like to now turn the call over to Sam Kolias.

Speaker #3: Thank you, Eric. Starting on slide four, welcome everyone to our Boardwalk Family Forever. And to our year-end 2025 results. Redefining BFF—Boardwalk Family Forever—is at the top of our organizational chart.

Sam Kolias: Thank you, Eric. Starting on slide 4, welcome everyone to our Boardwalk Family Forever and to our year-end 2025 results. Redefining BFF, Boardwalk Family Forever, is at the top of our organizational chart. Family is everything. Affordable multifamily communities have always been an essential product and service. Together with our residents, our associates, investors, partners, capital, environment, community, we are all essential and interconnected family members with our true north, where love always lives. Together, we go far. Our leaders put our team first, and our team puts our resident members first. Guided by the golden rule, we have a peak-performing customer service culture that creates exceptional results, as we continue to see on our next slide 5. Our continued impressive performance with GAAP and non-GAAP measures, increasing from the same quarter last year.

Speaker #3: Family is everything. Affordable multifamily communities have always been an essential product and service. Together, with our residents, our associates, investors, partners, capital environment, and community, we are all essential and interconnected family members, with our true north where love always lives.

Speaker #3: Together, we go far. Our leaders put our team first, and our team puts our resident members first. Guided by the golden rule, we have a peak-performing customer service culture that creates exceptional results, as we continue to see on our next slide, five.

Speaker #3: Our continued impressive performance with GAP and non-GAP measures increasing from the same quarter last year—same property rental revenue increased 5.8 percent, and same property net percent.

Sam Kolias: Same property rental revenue increased 5.8%, and same property net operating income increased 9%. Our operating margin increased by 190 basis points to 66.4%, as well as our Funds from Operations per unit increasing by 11.2%. I would like to now pass it over to Samantha Kolias-Gunn.

Speaker #3: Our operating margin increased by one hundred and ninety basis points to sixty-six point four percent, as well as our funds from operation per unit increasing by eleven point two percent.

Speaker #3: I would like to now pass it over to Samantha Kolias-Gunn.

Speaker #4: Thank you so much, Sam. We are extremely grateful for our teams, our Boardwalk families, perseverance, performance, and continued commitment to our purpose—bringing our resident family members home to love, always.

Samantha Kolias-Gunn: Thank you so much, Sam. We are extremely grateful for our teams, our Boardwalk families' perseverance, performance, and continued commitment to our purpose, bringing our resident family members home to love always. Continuing on to slide six... our operational stability and commitment to affordable housing. Rental market fundamentals in our core markets are balanced. Demand continues for more affordable housing, despite supply deliveries focused on higher-end luxury product to justify high construction costs. We are so grateful for our partnership with CMHC and our federal government that have implemented effective public policy to build more supply that has resulted in a balancing of the rental markets across Canada, providing more affordability to all Canadians. We are well-positioned to deliver on our commitment to provide much-needed affordable housing in a more competitive environment with our experienced peak-performing team.

Speaker #4: Continuing on to slide six: our operational stability and commitment to affordable housing. Rental market fundamentals in our core markets are balanced. Demand continues for more affordable housing, despite supply deliveries focused on higher-end luxury product to justify high construction costs.

Speaker #4: We are so grateful for our partnership with CMHC and our federal government, who have implemented effective public policy to build more supply that has resulted in a balancing of the rental markets across Canada—providing more affordability to all Canadians.

Speaker #4: We are well positioned to deliver on our commitment to provide much-needed affordable housing in a more competitive environment with our experienced, peak-performing team, exceptional product quality, from the $1 billion invested since 2017 in rebrand and repositioning efforts, and dedication to our Boardwalk family as responsible community providers.

Samantha Kolias-Gunn: Exceptional product quality from the CAD 1 billion invested since 2017 in rebrand and repositioning efforts, and dedication to our Boardwalk family as responsible community providers. Our self-regulation provides us with continued steady results as we remain flexible with our rental rates, producing greater stability in occupancy, margins, NOI, and reputation. Paired with our strong financial foundation, minimum distribution policy resulting in maximum reinvestment and free cash flow, strategic repositioning, unparalleled customer service, and on our foundation of strong family values, we remain in a position to deliver solid performance. This is what sets us apart, bringing you home to where love always lives. Boardwalk strives to be the first choice in multifamily apartment communities to work, invest, and call home with our Boardwalk family forever. Moving on to Slide 7.

Speaker #4: Our self-regulation provides us with continued, steady results as we remain flexible with our rental rates, producing greater stability in occupancy, margins, NOI, and reputation.

Speaker #4: Paired with our strong financial foundation, minimum distribution policy resulting in maximum reinvestment and free cash flow, strategic repositioning, unparalleled customer service, and our foundation of strong family values, we remain in a position to deliver solid performance.

Speaker #4: This is what sets us apart—bringing new home to where love always lives. Boardwalk strives to be the first choice in multifamily apartment communities to work, invest, and call home with our Boardwalk family forever.

Speaker #4: Moving on to slide seven, our strategic rebranding enhances our resident member experience and exceptional quality at an affordable price—keeping our occupancy high at 97.6%.

Samantha Kolias-Gunn: Our strategic rebranding enhances our resident member experience and exceptional quality at an affordable price, keeping our occupancy high at 97.6%. Per rentals.ca data, our average occupied rents of CAD 1,590 for a two-bedroom apartment are attractive, especially relative to the Canadian average of CAD 2,245. Moving on to Slide 8. Alberta continues to see positive population growth with small relative amounts of non-permanent residents. Affordability continues to drive positive population and leading economic growth in our core markets, Alberta and Saskatchewan, reflected in our appendix. Quebec has delivered exceptional results, further evidencing the strong demand for affordable housing. Ontario remains stable. We are strategically in all the right places at the right time. Please refer to our appendix for more data on the resilience of the Alberta economy and renewed Alberta advantage.

Speaker #4: Per Rentals.ca data, our average occupied rents of $1,590 per two-bedroom apartment are attractive—especially relative to the Canadian average of $2,245. Moving on to slide eight, Alberta continues to see positive population growth with small relative amounts of non-permanent residents.

Speaker #4: Affordability continues to drive positive population and leading economic growth in our core markets, Alberta and Saskatchewan, reflected in our appendix. Quebec has delivered exceptional results, further evidencing the strong demand for affordable housing.

Speaker #4: Ontario remains stable. We are strategically in all the right places at the right time. Please refer to our appendix for more data on the resilience of the Alberta economy and the renewed Alberta advantage.

Speaker #4: We would like to now pass the call on to Greg Tinling, who will provide us with an overview of our quarter results, strong balance sheet, fair value, and ESG.

Samantha Kolias-Gunn: We would like to now pass the call on to Gregg Tinling, who will provide us with an overview of our quarter results, strong balance sheet, fair value, and ESG. Greg?

Speaker #4: Greg?

Gregg Tinling: Thank you, Samantha. Beginning on Slide 9, occupancy remains strong, supported by continued growth in occupied rent. While vacancy loss increased, the trust effectively reduced leasing incentives, which contributed to the higher rental revenue reported in Q4 2025 compared to the same period last year. These results reflect the success of our strategic initiatives aimed at maximizing free cash flow and diversifying our product offering, delivering meaningful financial performance. Of note, the decrease in rental revenue shown for Q3 2025, as compared to the second quarter, is due to properties that were sold that were previously included in the same property portfolio as reported in Q2 2025. Slide 10 provides an overview of leasing spreads for new and renewed leases under our self-regulated, resident-friendly centric model. This approach continues to drive strong retention and referrals while keeping turnover and operating expenses low.

Speaker #5: Thank you, Samantha. Beginning on slide nine, occupancy remains strong, supported by continued growth in occupied rent. While vacancy loss increased, the Trust effectively reduced leasing incentives, which contributed to the higher rental revenue reported in Q4 2025 compared to the same period last year.

Speaker #5: These results reflect the success of our strategic initiatives aimed at maximizing free cash flow and diversifying our product offering, delivering meaningful financial performance. Of note, the decrease in rental revenue shown for Q3 2025 as compared to the second quarter is due to properties that were sold, which were previously included in the same property portfolio as reported in Q2 2025.

Speaker #5: Slide ten provides an overview of leasing spreads for new and renewed leases under our self-regulated, resident-friendly, centric model. This approach continues to drive strong retention and referrals, while keeping turnover and operating expenses low.

Speaker #5: On a year-over-year basis, leasing spreads have moderated, reflecting a more balanced supply-demand environment. Increased supply in select portfolio markets, particularly at the higher price points, has led to greater competition and vacancy.

Gregg Tinling: On a year-over-year basis, leasing spreads have moderated, reflecting a more balanced supply-demand environment. Increased supply in select portfolio markets, particularly at the higher price points, has led to greater competition and vacancy. Q4 2025 reflected a return to typical seasonality. Coupled with reduced migration activity, this led to softer traffic, prompting us to concentrate on our priority of sustaining strong occupancy levels. Our strategic flexibility with new rental rates enabled us to preserve elevated occupancy while maintaining solid operating margins and net operating income. We remain focused on maintaining high occupancy and maximizing resident retention. This strategy reinforces our commitment to providing affordable, resident-friendly housing in our core markets, while also reducing costs and steadying operational performance, delivering long-term value for all stakeholders. Slide 11 shows sequential quarterly rental revenue growth, including 0% growth in Q4 2025 compared to the previous quarter.

Speaker #5: Q4 2025 reflected a return to typical seasonality. Coupled with reduced migration activity, this led to softer traffic, prompting us to concentrate on our priority of sustaining strong occupancy levels.

Speaker #5: Our strategic flexibility with new rental rates enabled us to preserve elevated occupancy while maintaining solid operating margins in that operating income. We remain focused on maintaining high occupancy and maximizing resident retention.

Speaker #5: This strategy reinforces our commitment to providing affordable, resident-friendly housing in our core markets, while also reducing costs and steadying operational performance, delivering long-term value for all stakeholders.

Speaker #5: Slide eleven shows sequential quarterly rental revenue growth, including zero percent growth in Q4 2025 compared to the previous quarter. The change over each quarter is a reflection of Boardwalk's strategy, striving toward balancing the optimum level of market rents, rental incentives, and occupancy rates in order to achieve its NOI optimization strategy.

Gregg Tinling: The change over each quarter is a reflection of Boardwalk's strategy, striving toward balancing the optimum level of market rents, rental incentives, and occupancy rates in order to achieve its NOI optimization strategy. Turning to Slide 12, same-property net operating income increased by 7.3% in Q4 2025 compared to the same quarter last year. Supported by revenue growth of 4.5%, Alberta, the trust's largest region, contributed meaningfully to this performance, with a 4.4% increase in rental revenue, driven by stronger in-place occupied rents and reduced leasing incentives. Total rental expenses declined by 0.6% year-over-year, primarily due to lower utility costs with the removal of the federal carbon tax, alongside reductions in property taxes and insurance premiums. Slide 13 highlights administration costs and deferred unit-based compensation.

Speaker #5: Turning to slide twelve, same property net operating income increased by 7.3% in Q4 2025, compared to the same quarter last year.

Speaker #5: Supported by revenue growth of four point five percent, Alberta, the trust's largest region, contributed meaningfully to this performance with a four point four percent increase in rental revenue, driven by stronger in-place occupied rents and reduced leasing incentives.

Speaker #5: Total rental expenses declined by 0.6% year-over-year, primarily due to lower utility costs with the removal of the federal carbon tax, alongside reductions in property taxes and insurance premiums.

Speaker #5: Slide thirteen highlights administration costs and deferred unit-based compensation. Overall, total administration costs for the year increased 2.4% compared to 2024, mainly due to inflationary wage adjustments at the onset of the year.

Gregg Tinling: Overall, total administration costs for the year increased 2.4% compared to 2024, mainly due to inflationary wage adjustments at the onset of the year. Deferred unit-based compensation decreased 11.7% year-over-year, due to a CAD 850,000 one-time true-up adjustment in the prior year, to recognize unvested deferred units that would automatically vest if the participants who were eligible were to depart from Boardwalk. Slide 14 outlines Boardwalk's mortgage maturity schedule. The trust debt portfolio is well staggered, with approximately 96% of the mortgage balance carrying NHA insurance through the Canada Mortgage and Housing Corporation.

Speaker #5: Deferred unit-based compensation decreased eleven point seven percent year-over-year due to an eight hundred fifty thousand dollar one-time true-up adjustment in the prior year, to recognize unvested deferred units that would automatically vest if the participants who were eligible were to depart from Boardwalk.

Speaker #5: Slide fourteen outlines Boardwalk's mortgage maturity schedule. The trust's debt portfolio is well staggered, with approximately 96% of the mortgage balance carrying NHA insurance through the Canada Mortgage and Housing Corporation.

Speaker #5: This insurance remains in place for the full amortization period and, backed by the government of Canada, enables access to financing at rates below conventional mortgage levels, with a current estimated five-year and ten-year CMHC rate of three point four five percent and four percent respectively.

Gregg Tinling: This insurance remains in place for the full amortization period and, backed by the government of Canada, enables access to financing at rates below conventional mortgage levels, with a current estimated 5-year and 10-year CMHC rate of 3.45% and 4%, respectively. Although current interest rates are above the trust's maturing rates over the next few years, the trust maturity curve remains staggered, reducing the renewal amount in any particular year. Lastly, the trust has an interest coverage of 3.08 in the current quarter. In 2025, the trust renewed CAD 403 million at an average interest rate of 3.72%, and with an average term of 6 years. In addition, the trust made mortgage principal repayments totaling CAD 79 million during the year.

Speaker #5: Although current interest rates are above the trust's maturing rates over the next few years, the trust's maturity curve remains staggered, reducing the renewal amount in any particular year.

Speaker #5: Lastly, the trust has an interest coverage of three point zero eight in the current quarter. In twenty twenty-five, the trust renewed four hundred and three million dollars at an average interest rate of three point seven two percent, and with an average term of six years.

Speaker #5: In addition, the trust made mortgage principal repayments totaling seventy-nine million dollars during the year. To date, of the eight hundred and thirty-two million dollars of twenty twenty-six mortgages maturing, we have renewed or forward blocked two hundred and twenty-eight million dollars at an average rate of three point seven two percent and an average term of approximately eight years.

Gregg Tinling: To date, of the eight hundred and thirty-two million dollars of 2026 mortgages maturing, we have renewed or forward blocked two hundred and twenty-eight million dollars at an average rate of 3.72% and an average term of approximately eight years. Combined with our cash on hand, as well as our unused credit facilities, we are well positioned with strong liquidity available. Current underwriting criteria in our most recent submissions to CMHC and our lenders has remained in line with our historically conservative estimates. Please refer to slide 49, which summarizes our 2025 mortgage program completed, and slide 50 for additional details on our 2026 mortgage program. Slide 15 illustrates the trust's estimated fair value of its investment properties, excluding adjustments for IFRS 16.

Speaker #5: Combined with our cash on hand, as well as our unused credit facilities, we are well positioned with strong liquidity available. Current underwriting criteria in our most recent submissions to CMHC and our lenders has remained in line with our historically conservative estimates.

Speaker #5: Please refer to slide forty-nine, which summarizes our 2025 mortgage program completed, and slide fifty for additional details on our 2026 mortgage program.

Speaker #5: Slide fifteen illustrates the trust's estimated fair value of its investment properties, excluding adjustments for IFRS sixteen. As of December thirty-first, twenty twenty-five, the fair value of investment properties totaled eight point seven billion dollars, compared to eight point two billion dollars as of December thirty-first, twenty twenty-four.

Gregg Tinling: As of December 31, 2025, the fair value of investment properties totaled CAD 8.7 billion, compared to CAD 8.2 billion as of December 31, 2024. The increase in overall fair value is the result of new acquisitions during the year and increases from rental rate growth, while being slightly offset by dispositions of non-core assets, an increase in cap rates in select markets, along with an upward adjustment for vacancy assumptions in Calgary to reflect a more balanced market. Current estimated fair value of approximately CAD 247,000 per apartment door remains below replacement cost. In consultation with our external appraisers, the cap rates used in determining Q4 2025 fair value increased from Q4 2024 and Q3 2025, as cap rates were increased in Ontario, Victoria, as well as the trust's secondary markets in Alberta.

Speaker #5: The increase in overall fair value is the result of new acquisitions during the year and increases from rental rate growth, while being slightly offset by dispositions of non-core assets and increases in cap rates in select markets, along with an upward adjustment for vacancy assumptions in Calgary to reflect a more balanced market.

Speaker #5: Current estimated fair value of approximately two hundred and forty-seven thousand dollars per apartment door remains below replacement cost. In consultation with our external appraisers, the cap rates used in determining Q4 twenty twenty-five fair value increased from Q4 twenty twenty-four and Q3 twenty twenty-five, as cap rates were increased in Ontario, Victoria, as well as the trust's secondary markets in Alberta.

Speaker #5: The increase in cap rates was in response to either increased pressure on market rents or to reflect slightly higher risk fundamentals. As it does every quarter, the Trust will continue to review completed asset sales transactions and market reports to determine if adjustments to cap rates are necessary.

Gregg Tinling: The increase in cap rates were in response to either increased pressure on market rents or to reflect slightly higher risk fundamentals. As it does every quarter, the trust will continue to review completed asset sales, transactions, and market reports to determine if adjustments to cap rates are necessary. Most recent published cap rate reports suggest that the cap rates being utilized by the trust for calculating fair value are within their estimated ranges. Slide 16 highlights our ESG initiatives. We'd like to highlight our 2025 GRESB score of 72, which represents a 7.5% increase compared to the prior year. Using a disciplined capital allocation approach, we are focused on reducing emissions through reduced utilities consumption, and therefore reducing utilities costs, while always promoting social and governance initiatives. We encourage our stakeholders to view our 2024 ESG report, available on the trust's website.

Speaker #5: Most recent published cap rate reports suggest that the cap rates being utilized by the Trust for calculating fair value are within their estimated ranges.

Speaker #5: Slide sixteen highlights our ESG initiatives. We'd like to highlight our 2025 GRESB score of 72, which represents a 7.5% increase compared to the prior year.

Speaker #5: Using a disciplined capital allocation approach, we are focused on reducing emissions through reduced utilities consumption and, therefore, reducing utilities costs. While always promoting social and governance initiatives, we encourage our stakeholders to view our 2024 ESG report available on the trust's website.

Speaker #5: I would now like to turn the call over to Samantha Adams to highlight our capital allocation initiatives.

Gregg Tinling: I would like to now turn the call over to Samantha Adams to highlight our capital allocation initiatives.

Speaker #6: Thank you, Greg. Twenty twenty-five was a year of tactical, disciplined capital recycling and allocation. As we move into twenty twenty-six, we are maintaining this approach and continue to focus on our value-add repositioning initiatives, targeted dispositions of our non-core communities, and unit repurchase program under the NCIB.

Samantha Adams: Thank you, Greg. 2025 was a year of tactical, disciplined capital recycling and allocation. As we move into 2026, we are maintaining this approach and continue to focus on our value-add repositioning initiatives, targeted dispositions of our non-core communities, and unit repurchase program under the NCIB. Slide 17 illustrates how the reinvestment of our free cash flow back into our communities significantly increases the value proposition for our resident family members by upgrading common areas and adding meaningful amenities to enhance their overall experience. These renovations, in turn, help us strengthen market share in a more balanced market, boost retention, and improve occupancy, ultimately enhancing our NOI and operating margins. In 2025, we completed the repositioning of 20 communities, and since 2017, have undertaken renovations across the majority of our portfolio.

Speaker #6: Slide seventeen illustrates how the reinvestment of our free cash flow back into our communities significantly increases the value proposition for our resident family members by upgrading common areas and adding meaningful amenities to enhance their overall experience.

Speaker #6: These renovations, in turn, help us strengthen market share in a more balanced market, boost retention, and improve occupancy, ultimately enhancing our NOI and operating margins.

Speaker #6: In 2025, we completed the repositioning of 20 communities, and since 2017, have undertaken renovations across the majority of our portfolio.

Speaker #6: Our strategy is to continue with our renovation program, and we have sixteen projects planned for 2026. Slide eighteen demonstrates the ongoing disconnect between our unit price and the value of our portfolio.

Samantha Adams: Our strategy is to continue with our renovation program and have 16 projects planned for 2026. Slide 18 demonstrates the ongoing disconnect between our unit price and the value of our portfolio. Our NCIB continues to be a key capital allocation tool, helping to drive our compounded FFO per unit growth by over 12% per year since 2021. Over the past year, we invested CAD 57.3 million into our unit repurchase program at an average price of CAD 63.81. We have remained active with our buyback strategy, and to date, in 2026, we have tactically deployed CAD 18 million under the NCIB at a weighted average price of CAD 67.63. This investment in our units and our platform remains the most accretive use of our capital today, at implied yields exceeding 6%.

Speaker #6: Our NCIB continues to be a key capital allocation tool, helping to drive our compounded FFO per unit growth by over 12% per year since 2021.

Speaker #6: Over the past year, we invested fifty-seven point three million dollars into our unit repurchase program at an average price of sixty-three dollars and eighty-one cents.

Speaker #6: We have remained active with our buyback strategy and to date in twenty twenty-six, we have tactically deployed eighteen million dollars under the NCIB at a weighted average price of sixty-seven dollars and sixty-three cents.

Speaker #6: This investment in our units and our platform remains the most accretive use of our capital today, at implied yields exceeding 6 percent. Slides nineteen and twenty present a summary of the acquisitions and dispositions successfully completed or recently announced.

Samantha Adams: Slides 19 and 20 present a summary of the acquisitions and dispositions successfully completed or recently announced. In 2025, we acquired CAD 551 million in new properties located in Montreal, Calgary, Regina, and Saskatoon at an average cap rate of 5%, representing our lifestyle and community brands. We also completed the sale of CAD 241 million of non-core properties in Quebec City and Edmonton, and subsequent to year-end, we have completed or announced the sale of an additional CAD 84 million of non-core properties. Two are located in Montreal and three are located in Edmonton. Our dispositions were sold at an average cap rate of approximately 5% and represent an average vintage of 1982.

Speaker #6: In twenty twenty-five, we acquired five hundred and fifty-one million dollars in new properties located in Montreal, Calgary, Regina, and Saskatoon, at an average cap rate of five percent, representing our lifestyle and community brands.

Speaker #6: We also completed the sale of two hundred and forty-one million dollars of non-core properties in Quebec City and Edmonton, and subsequent to year-end, we have completed or announced the sale of an additional eighty-four million dollars of non-core properties.

Speaker #6: Two are located in Montreal, and three are located in Edmonton. Our dispositions were sold at an average cap rate of approximately 5 percent and represent an average vintage of 1982.

Speaker #6: These successful dispositions completed at pricing in line with our fair value have enabled us to strategically redeploy capital toward the strongest risk-adjusted opportunities, as summarized on slide twenty-one. Today, we anticipate remaining active under the NCIB and continuing the disposition program of our non-core properties at levels comparable to or exceeding 2025.

Samantha Adams: These successful dispositions, completed at pricing in line with our fair value, have enabled us to strategically redeploy capital towards the strongest risk-adjusted opportunities, as summarized on slide 21. Today, we anticipate remaining active under the NCIB and continuing the disposition program of our non-core properties at levels comparable to or exceeding 2025. I would now like to turn the call over to James Ha to discuss our track record of creating value and our updated 2026 guidance.

Speaker #6: I would now like to turn the call over to James Ha to discuss our track record of creating value and our updated 2026 guidance.

Speaker #1: Thank you, Samantha, and thank you to our entire Boardwalk team for your service and commitment to our resident members, which has resulted in these strong 2025 results our team is sharing today.

James Ha: Thank you, Samantha, and thank you to our entire Boardwalk team for your service and commitment to our resident members, which has resulted in the strong 2025 results our team is sharing today. Our focus on investing in and delivering the best quality and affordable communities is why our residents make Boardwalk their first choice as the place to call home and reward our team with continued high occupancy and high retention rates. Slide 22 introduces our 2026 outlook as we build off our base of accretion-focused capital allocation and strong operating platform that provides resident-friendly affordability, product value, and value in our communities. With a housing market that is more balanced, we continue to see that the demand for affordable housing remains resilient, and our outlook for the upcoming year is positive.

Speaker #1: Our focus on investing in and delivering the best quality and affordable communities is why our residents make Boardwalk their first choice as the place to call home, and reward our team with continued high occupancy and high retention rates.

Speaker #1: Slide twenty-two introduces our 2026 outlook as we build off our base of accretion-focused capital allocation and strong operating platform that provides resident-friendly affordability, product value, and value in our communities.

Speaker #1: With a housing market that is more balanced, we continue to see that the demand for affordable housing remains resilient. Our outlook for the upcoming year is positive.

Speaker #1: Twenty twenty-six, we are anticipating same property NOI growth of between one and a half and four and a half percent, and FFO per unit of between four dollars and sixty-five cents, and four dollars and ninety cents.

James Ha: 2026, we are anticipating same-property NOI growth of between 1.5 and 4.5%, and FFO per unit of between CAD 4.65 and 4.90. Please note that this forward-looking guidance does not include any potential asset dispositions, and we will be regularly updating and refining our outlook in the quarters to come. On slide 23, we are pleased to announce an 11% increase to our regular monthly distribution, equating to CAD 1.80 per trust unit on an annualized basis beginning in March. Since 2021, our distribution has increased at a compounded annual growth rate of over 10%, while still retaining an industry-high proportion of our cash flow to reinvest and compound growth.

Speaker #1: Please note that this forward-looking guidance does not include any potential asset dispositions, and we will be regularly updating and refining our outlook in the quarters to come.

Speaker #1: On slide twenty-three, we are pleased to announce an eleven percent increase to our regular monthly distribution, equating to $1.80 per trust unit on an annualized basis, beginning in March.

Speaker #1: Since 2021, our distribution has increased at a compounded annual growth rate of over 10%, while still retaining an industry-high proportion of our cash flow to reinvest and compound growth.

James Ha: Our formula has extended our FFO per unit track record, and in 2025, we have more than doubled our FFO per unit in just eight years. Slide 24. This FFO growth, along with our approach to maximum cash flow retention, has improved our leverage metrics to provide Boardwalk with one of the strongest and most flexible balance sheets. By retaining and recycling our own cash flow, we are able to grow while also consistently improve our leverage metrics. Provides the trust with significant flexibility and liquidity to take advantage of opportunities that arise. One of these opportunities is shown on slides 25 and 26, which highlights the exceptional value that our trust units represent. Our current trading price equates to less than CAD 200,000 per apartment door at a mid 6% cap rate on a forward basis.

Speaker #1: Our formula has extended our FFO per unit track record, and in 2025, we have more than doubled our FFO per unit in just eight years.

Speaker #1: Slide twenty-four: This FFO growth, along with our approach to maximum cash flow retention, has improved our leverage metrics to provide Boardwalk with one of the strongest and most flexible balance sheets.

Speaker #1: By retaining and recycling our own cash flow, we are able to grow while also consistently improving our leverage metrics. This provides the trust with significant flexibility and liquidity to take advantage of opportunities that arise.

Speaker #1: One of these opportunities is shown on slides twenty-five and twenty-six, which highlights the exceptional value that our trust units represent. Our current trading price equates to less than $200,000 per apartment door, and a mid-six percent cap rate on a forward basis.

Speaker #1: Both metrics are exceptional when considering our product quality locations, spread to financing costs, and consistent cash flow growth as shared in our outlook. Recent private market transactions continue to be supportive of our estimated net asset value of two hundred and forty-seven thousand per door, or ninety-six dollars per trust unit.

James Ha: Both metrics are exceptional when considering our product quality, locations, spread to financing costs, and consistent cash flow growth, as shared in our outlook. Recent private market transactions continue to be supportive of our estimated net asset value of CAD 247,000 per door or CAD 96 per trust unit. With the value our trust units represent, we are currently prioritizing investing in our own assets and platform through our Normal Course Issuer Bid, with a planned minimum investment of CAD 100 million to take advantage of this very attractive pricing and valuation in our own high-value platform. In closing, our team continues to be focused on delivering the best quality and value in housing to our resident members.

Speaker #1: With the value our trust units represent, we are currently prioritizing investing in our own assets and platform through our normal course issuer bid. With a planned minimum investment of $100 million to take advantage of this very attractive pricing and valuation in our own high-value platform.

Speaker #1: In closing, our team continues to be focused on delivering the best quality and value in housing to our resident members. Our unique operating platform and experienced team continue to demonstrate our ability to create value for all our stakeholders as we consistently deliver leading organic and FFO per unit growth, which is increasing our free cash flow and operating margins.

James Ha: Our unique operating platform and experienced team continues to demonstrate our ability to create value for all our stakeholders as we consistently deliver leading organic and FFO per unit growth that is increasing our free cash flow and operating margins. We would like to thank our resident members, our team, our partners, and all our stakeholders for an exceptional 2025. We are looking forward to continuing our track record of growth into 2026, providing communities that our resident members call home. We would now like to open up the line for questions. John?

Speaker #1: We would like to thank our resident members, our team, our partners, and all our stakeholders for an exceptional 2025. We are looking forward to continuing our track record of growth into 2026 by providing communities that our resident members call home.

Speaker #1: We would now like to open up the line for questions. John?

Speaker #2: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star followed by the number one on your touch-tone phone.

Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star followed by the number one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the number two. If you're using a speakerphone, please lift the handset before pressing any keys. Our first question comes from the line of Dean Wilkinson from CIBC. Your line is now open.

Speaker #2: You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the number two.

Speaker #2: If you're using a speakerphone, please lift the handset before pressing any keys. Our first question comes from the line of Dean Wilkinson from CIBC.

Speaker #2: Your line is now open.

Dean Wilkinson: ... Thanks. Morning, everybody. Maybe just a high level, the news last night, probably not a surprise to anybody, but can we just sort of get your thoughts on what you think a referendum could mean, just for population growth, demand, things like that? I know the outcomes could be varied and very hard to peg, but just how are you thinking about that?

Speaker #3: Thanks, morning, everybody. Maybe just a high-level—the news last night, probably not a surprise to anybody—but can we just sort of get your thoughts on what you think a referendum could mean, just for population growth, demand, things like that? I know the outcomes could be varied and very hard to peg, but just how you're thinking about that.

Speaker #1: Thank you, Dean and Sam. And it's hard to see very many lineups and crowds, just anecdotally, on referendum, and I'm not too sure which referendum because there was a number of referendum questions yesterday. And then, you know, there's also the referendum on separation.

Sam Kolias: Thank you, Dean. It's Sam, and it's hard to see very many lineups and crowds just anecdotally on referendum. I'm not too sure which referendum, because there was a number of referendum questions yesterday, and then, you know, there's also the referendum on separation. The good news, over the summer, there was a lot of crowds on the petition for Canada and to keep Canada together. Personally, I saw a lot of people, and we saw the most signups on keeping Alberta in a Canada, more signatures than we've ever received. So that's what we're looking at, and, you know, we're not really aware, and, you know, the friends that we have are for Alberta in Canada. I don't really know very many personally.

Speaker #1: And, the good news over the summer, there was a lot of crowds on the petition for Canada. And to keep Canada together. And, and personally, I saw a lot of people, and we saw the most sign-ups on keeping Alberta in Canada.

Speaker #1: More signatures than, than we've ever, ever received. So that's what we're looking at and, you know, we're not really aware and, you know, the, the friends that we have are for Alberta in Canada.

Speaker #1: I, I don't really know very many personally. It's best that we stay together. That's, a, a good public policy. And the, immig— the, referendum that we just got yesterday, with immigration, on, on that, immigration or referendum question, we agree with the best case examples on public policy that our Premier noted, during our Harper administration.

Sam Kolias: It's best that we stay together. That's a good public policy. And the referendum that we just got yesterday with immigration, on that immigration or referendum question, we agree with the best case examples on public policy that our premier noted during our Harper administration. And the positive migration, the economic growth that came with it, and the very sustainable immigration policy that we did have during the Harper administration, where a lot of folks that we need to build more schools, help us with our hospitals, healthcare, teachers, all the trades that we continue to need. You know, that has been proven public policy that our premier is pointing out that is for everybody's benefit, and what our premier is championing.

Speaker #1: And the positive migration, the economic growth that came with it, and the very sustainable immigration policy that we did have during the Harper administration.

Speaker #1: Where a lot of folks, that we need to build more schools, help us with our hospitals, healthcare, teachers, all the trades that we continue to need—you know, that has been proven public policy that our Premier is pointing out that is for everybody's benefit.

Speaker #1: And, and, and, and what our Premier is championing for—that, by the way, we are champions of sustainable population growth, that, that we need.

Sam Kolias: For that, by the way, we are champions of sustainable population growth that we need. And so that's our thoughts on the two referendum questions.

Speaker #1: And, and, and so that, that's our, that's our thoughts on the two referendum questions.

Speaker #3: Yeah, I guess it's an issue that you wouldn't have to talk about if everyone didn't want to be there, so it's a positive, I suppose.

Dean Wilkinson: Yeah, I guess it's an issue that you wouldn't have to talk about it if everyone didn't want to be there, so it's a positive, I suppose. Maybe on a little more of an esoteric note, Sam, you've kind of embraced technology in the past. You've made technology platform investments. AI has been, you know, it's kind of rolling through the market as this disruptive force over the past couple of weeks. How are you guys thinking about what AI could do for the business and perhaps how that could help managing sort of multifamily as we go forward? Because I would imagine it's not a disruptor, but perhaps more of an enabler.

Speaker #3: Maybe on a little more of an esoteric note, Sam, you've kind of embraced technology in the past. You've made technology platform investments. AI is, it's kind of rolling through the market as this disruptive force over the past couple of weeks.

Speaker #3: How are you guys thinking about what AI could do for the business, and perhaps how that could help managing multifamily as we go forward?

Speaker #3: Cause I—I would imagine it's not a disruptor, but perhaps more of an enabler.

Speaker #1: Correct. It's Sam again, Dean. And we use our tools and technology to increase our productivity, to decrease our costs, to increase our resident member experience.

Sam Kolias: Correct. It's Sam again, Dean, and we use our tools and technology to increase our productivity, to decrease our costs, to increase our resident member experience. And we've seen some positive time-reducing benefits from the tools that we've developed. We've also seen and we've all experienced the challenges with AI, and anybody on this call that's tried to deal with a chatbot alone shares our collective frustrations with just AI. So it's absolutely clear that the choice is essential, and human intelligence is still superior to artificial intelligence, and together, we have to use artificial intelligence as a tool and recognize that.

Speaker #1: And, and, and we've seen some positive, time-reducing benefits from the tools that we've developed. We've also seen, and we've all experienced, the challenges with AI, and anybody on this call that's tried to deal with a chatbot alone shares our collective frustrations with just AI.

Speaker #1: So, it's absolutely clear that the choice is essential. And human intelligence is still superior to artificial intelligence. And together, we have to use artificial intelligence as a tool.

Speaker #1: And, and recognize that. And always provide the choice for our resident members to, to, channels that, that, quickly allow access to either one of our amazing personal service associates, managers, versus a chatbox that, you know, for some tasks, are, are, acceptable.

Sam Kolias: Always provide the choice for our resident members to channels that quickly allow access to either one of our amazing personal service associates, managers versus a chat box that, you know, for some tasks are acceptable and simple. So I guess it's more used as a tool, our productivity. The information, the reports that we see, the dashboards very, very helpful to see the data that we continue to use and harvest to make the best decisions for our productivity and our resident member experience.

Speaker #1: And simple. So I guess it's more used as a tool for productivity. The information, the reports that we see, the dashboards—very, very helpful to see the data that we continue to use and harvest to make the best decisions for our productivity and our resident member experience.

Speaker #3: No, that's great. You and I are both big fans of human intelligence. That's my two questions. I will hand it back. Thanks, Sam.

Dean Wilkinson: No, that's great. You and I are both big fans of human intelligence. That's my two questions. I will hand it back. Thanks, Sam.

Speaker #1: Thank you, Dean.

Sam Kolias: Thank you, Dean.

Speaker #4: Your next question comes from the line of Fred Blundu from Green Street. Your line is now open.

Operator: Your next question comes from the line of Fred Blondeau from Green Street. Your line is now open.

Speaker #5: Thank you, and good morning. I'll keep the subject of referendums for the stampede question for James here. Just looking at your SPNOI guidance.

Fred Blondeau: ... Thank you, and good morning. I'll keep the subject of referendums for the stampede. A question for James here. Just looking at your SPNOI guidance, I was wondering if you could give us a sense of the main assumptions on each end of the spectrum, because it looks a bit wide on our end.

Speaker #5: I was wondering if you could give us a sense of the main assumptions on each end of the spectrum, because it looks a bit wide on our end.

Speaker #1: Sure, Fred. Hey, it's James. Let me—let me start. And can you please add in if I'm missing anything? But when we look at same property NOI, the approximate breakdowns are revenue between about 2.5% and 4%.

James Ha: Sure, Fred. Hey, it's James. Let me, let me start, and team feed that in if we're missing anything. But when we look at same-property NOI, the approximate breakdowns are revenue between about 2.5% and 4%. And then on the operating expense side, in generally between 2% to 4%.

Speaker #1: And then on the operating expense side, we've seen generally between 2% to 4%.

Speaker #5: Mm-hmm, got it, thank you. And would you say you see greater risks on the demand side for '26, or more on the supply side?

Fred Blondeau: Mm-hmm. Got it. Thank you, and would you say you see greater risks on the demand side for 26 or more on the supply side, or a mix of both?

Speaker #5: Or, or, a mix of both?

Speaker #1: You know, it's certainly a mix of both, Fred. You know, we, for the first time in a long time, are seeing a much more balanced housing market across Canada.

James Ha: Yeah, it's certainly a mix of both, Fred. You know, we, for the first time in a long time, are seeing a much more balanced housing market across Canada. Where is that coming from? Well, that's coming from the additional supply that we as Canadians needed in the housing market. As you know, most of that supply that has been delivered and is being delivered is primarily at the upper end of the rental market because of the cost of construction. And so, you know, we do see the upper end of the rental market continuing to be competitive. Where we are seeing strength and resilience, though, is affordable housing.

Speaker #1: And where's that coming from? Well, that's coming from the additional supply that we as Canadians needed in the housing market. As you know, most of that supply that's being, that has been delivered and is being delivered, is primarily at the upper end of the rental market because of the cost of construction.

Speaker #1: And so, you know, we do see the upper end of the rental market continuing to be competitive. Where we are seeing strength and resilience, though, is affordable housing.

Speaker #1: And fortunately, with our portfolio average rents below $1,600, we think the majority of our portfolio is going to continue to see the benefits of that.

James Ha: Fortunately, with our portfolio average rents of below CAD 1,600, we think the majority of our portfolio is going to continue to see the benefits of that. So, you know, through the winter months, on the demand side, as Gregg talked about in his prepared remarks-

Speaker #1: And so, you know, through the winter months on the demand side, as Greg talked about in his prepared remarks, we did see much slower traffic this winter.

Fred Blondeau: Mm-hmm.

James Ha: We did much slower traffic this winter, kind of the return to seasonality. We had cold weather pretty well across the country and saw that reflected in terms of traffic. With February now, and as we get into the spring rental season, we have seen that pick up. And so February, so far, so good. You know, in the first 19 days of February, we're almost 90% covered of our turnover, which is a great sign. And so, we are seeing the early signs today of what could be a good return to spring rental season.

Speaker #1: Kind of the return to seasonality. We had cold weather pretty well across the country, and we saw that reflected in terms of traffic. With February now, and as we get into the spring rental season, we have seen that pick up.

Speaker #1: And so, February—so far, so good. You know, in the first 19 days of February, we're almost 90% covered of our turnover, which is a great sign.

Speaker #1: And so, we are seeing the early signs today of what could be a good return to the spring rental season.

Speaker #5: Mm-hmm. Thank you. I appreciate the caller.

Fred Blondeau: Mm-hmm. Thank you. I appreciate the call.

Speaker #1: Thanks, Fred.

James Ha: Thanks, Fred.

Speaker #4: Your next question comes from the line of Brad Sturgis from Raymond James. Your line is now open.

Operator: Your next question comes from the line of Brad Sturges from Raymond James. Your line is now open.

Speaker #5: Hey, good morning. Just maybe expand on that line of questioning that Fred had there. Just, I guess, you know, and I appreciate the chart you gave on leasing spreads to date.

Brad Sturges: Hey, good morning. Just to maybe expand on that line of questioning that Fred had there, just, I guess, you know, and appreciate the chart you gave on leasing spreads to date. Just in terms of what's occurred in January and February, can you give a sense of the type of turnover you're seeing? I know that the focus is more on retention, but is there a little bit more specific breakdown you can give in terms of the breakdown of the suites turning either by affordability, price point, or other metrics?

Speaker #5: Just in terms of what's occurred in January and February, can you give a sense of the type of turnover you're seeing? I know that the focus is more on retention.

Speaker #5: But is there a little bit more specific breakdown you can give in terms of the breakdown of the suites turning, either by affordability, price point, or other metrics?

Speaker #1: You know, Brad, we don't have the exact stats to be able to deliver them right now. However, we have looked at the type of turnover that we're getting, and we're seeing it primarily at the upper ends.

James Ha: You know, Brad, we don't have the exact stats to be able to deliver them right now. However, we have looked at the type of turnover that we're getting, and we're seeing primarily at the upper end. Again, as we talked about, what we're seeing is that our more affordable product, the availability of that remains very close to zero. You know, we've shared this story before. If anybody was looking to move to Alberta and Saskatchewan, and you needed to move here for March first, and your budget was CAD 1,500, I would say, "Hey, we're going to have to do some work to find you that apartment." If you came to Alberta or Saskatchewan, and your budget was CAD 2,200, there's availability at that price point.

Speaker #1: Again, as we talked about, what we're seeing is that our more affordable product—the availability of that—remains very close to zero. You know, we've shared this story before.

Speaker #1: If anybody was looking to move to Alberta and Saskatchewan, and you needed to move here for March 1st, and your budget was $1,500, I would say, "Hey, we're going to have to do some work to find you that apartment." If you came to Alberta or Saskatchewan and your budget was $2,200, there's availability.

Speaker #1: At that, at that price point. And so, as a result of that, because there is more availability, more choice at that upper end, that's where you are seeing more velocity and movement from a resident standpoint.

James Ha: As a result of that, because there is more availability, more choice at that upper end, that's where you are seeing more velocity and movement from a resident standpoint. But we did add on that leasing spreads graph our volume and number of leases completed in each month. As we can see there, the winter months are slower. We remain focused on retention. As we talked about, with the pickup so far, with what we're seeing in February, we do anticipate an improvement in those new leasing spreads.

Speaker #1: But we did add, on that leasing spreads graph, our volume and number of leases completed in each month. And so, as we can see there, the winter months are slower.

Speaker #1: We are, we remain focused on retention. And as we talked about, with the pickup so far with what we're seeing in February, we do anticipate an improvement in those new leasing spreads.

Speaker #5: Right, that's helpful. I guess, you know, can you comment also in terms of, like, lease incentives have been trending down to the end of the year?

Brad Sturges: Right. That's helpful. I guess, you know, can you comment also in terms of like, incentives have been trending down to the end of the year? Like, how, how are you using incentives, I guess, within Q1, and then how would you expect that to trend over the rest of the year?

Speaker #5: Like, how—how are you using incentives, I guess, within Q1? And then how would you expect that to trend over the rest of the year?

Speaker #1: Yeah, fairly sporadically. I mean, our team always has the ability—our leasing team always has the ability—to use what we call pocket incentives.

James Ha: Yeah, fairly sporadically. I mean, our team always has the ability—our leasing team always has the ability to use what we call pocket incentives. But our approach has really just been to adjust market rents when needed. Obviously, through the winter months, our strategy and approach was to maintain our high occupancy, and so we remained really flexible with those incentives. I think going forward, as we move into the spring rental months, or pardon me, the spring rental season, we'll adjust market rents up or down accordingly, depending on how the leasing season goes. The outlook for incentives, though, you know, our team has done a remarkable job, a phenomenal job in terms of bringing those down.

Speaker #1: But our approach has really just been to adjust market rents when needed. Obviously, through the winter months, our strategy and approach was to maintain our high occupancy, and so we remained really flexible with those incentives.

Speaker #1: I think, going forward, as we move into the spring rental months—or, pardon me, the spring rental season—we'll adjust market rents up or down accordingly, depending on how the leasing season goes.

Speaker #1: The outlook for incentives, though—you know, our team has done a remarkable job, a phenomenal job, in terms of bringing those down. Going forward, we'll likely just focus on what that net rent number is and make those adjustments to face rents as appropriate.

James Ha: Going forward, we'll likely just focus on what that net rents number is and make those adjustments to face rents as appropriate.

Speaker #5: And just last question on the revenue guidance there—the 2.5 to 4. Could you break that down just by renewal spreads, new leasing, and what you're expecting for occupancy?

Brad Sturges: Just last question on the revenue guidance there, the 2.5 to 4. Could you break that down just by renewal spreads, new leasing, and what you're expecting for occupancy?

Speaker #1: Yeah, occupancy—you know, our strategy is always to maintain high occupancy, and so we're very happy with our occupancy levels today of almost 98%.

James Ha: Yeah, occupancy, you know, our strategy is always to maintain high occupancy, and so we're very happy with our occupancy levels today of almost 98%. Would love to see that creep a little bit higher, but you know, practically speaking, the 97% to 98% mark is a good mark to have, and a target that we have built into our forecast. Renewal spreads, again, we've been quite consistent there. As we look forward, our team and our retention teams are already negotiating renewals into April and May, and we're seeing very consistent results. And then on the new leasing spread side, again, as we get into the spring rental season, we would be looking for those to improve.

Speaker #1: Would love to see that creep a little bit higher. But, you know, practically speaking, the 97 to 98 percent mark is a good mark to have.

Speaker #1: And a target that we have built into our forecast. Renewal spreads, again, we've been quite consistent there. As we look forward, our team and our retention teams are already negotiating renewals into April and May.

Speaker #1: And we're seeing very consistent results. And then on the new leasing spread side, again, as we get into the spring rental season, we would be looking for those to improve.

Speaker #1: And that only happens because we are going into the spring rental season with 98% occupancy. We're very close to 98% occupancy and so, when I look at the cadence there, we expect renewals to remain consistent.

James Ha: And that only happens because we are going into the spring rental season with 98% occupancy or very close to 98% occupancy. And so, when I look at the cadence there, we expect renewals to remain consistent, and then an improvement from what you saw in December and January for new leasing spreads as we move into the spring.

Speaker #1: And then an improvement from what you saw in December and January for new leasing spreads as we move into the spring.

Speaker #5: Okay, appreciate it. I'll turn it back. Thank you.

Sairam Srinivas: Okay. Appreciate it. I'll turn it back. Thank you.

Speaker #1: Thanks, Fred.

James Ha: Thanks, Greg.

Speaker #4: Your next question comes from the line of Golden Wind Half Yard from TD Securities. Your line is now open.

Operator: Your next question comes from the line of Jonathan Kelcher from TD Securities. Your line is now open.

Speaker #6: Good afternoon, everybody. Just to add on to the same property NOI question from earlier, what do you think are some of the drivers that would put you guys on the top end of the range versus the bottom end of the guidance you guys provided?

Jonathan Kelcher: Good afternoon, everybody. Just to add on to the Same-Property NOI question from earlier, what do you think are some of the drivers that would put you guys on the top end of the range versus the bottom end, of the guidance you guys provided?

Speaker #1: Yeah, great question, Golden. It's James again. Certainly, you know, a real strong spring rental season would allow for that. Again, we see continued strong demand for the more affordable product.

James Ha: Yeah, great question, Jonathan. It's James again. Certainly, you know, a strong spring rental season would allow for that. Again, we see continued strong demand for the more affordable products. I think if we can see a strong influx of demand in our markets during spring, summer, that could set us up well to hit the upper end of that revenue range that we talked about earlier. In addition to, you know, our team is always focused in on our controllable costs. As we know, our team has performed very well on that each year over the last several, several years. And on the controllable side, you know, we, we have initiatives that we're driving that, we're aiming to improve on those as well.

Speaker #1: I think if we can see a strong influx of demand in our markets during spring and summer, that could set us up well to hit the upper end of that revenue range that we talked about earlier.

Speaker #1: In addition to, you know, our team is always focused in on our controllable costs. As we know, our team has performed very well on that each year over the last several, several years.

Speaker #1: And on the controllable side, you know, we have initiatives that we're driving that we're aiming to improve on as well. And so, if we can get some wins on those, that could potentially help us move towards that upper end.

James Ha: And so if we can get some wins on those, that could potentially help us move towards that upper end. On the non-controllable side, property taxes is a big one that, you know, Greg and team and we flagged last November. We are forecasting a slightly elevated property tax increase this year. And again, we're active on assessments, appeals, and working with our city councilors at the municipal level to see if we can bring those property taxes to more sustainable levels going forward. And so, you know, each of those components, Jonathan, are inputs into that, and, you know, we'll be working very hard on our side to outperform, as always, our forecasts here.

Speaker #1: On the non-controllable side, property taxes is a big one that, you know, Greg and team and we flagged last November. We are forecasting slightly elevated property tax again. We're active on assessments, appeals, and working with our city councillors at the municipal level to see if we can bring those property taxes to more sustainable levels going forward.

Speaker #1: And so, you know, each of those components, Golden, are inputs into that. And, you know, we'll be working very hard on our side to outperform, as always, our forecasts here.

Speaker #6: Great, thanks for the call. Maybe one more from my end—just on capital recycling. You've made good progress last year. Maybe if you could talk a bit about how you're feeling about the disposition environment for 2026.

Jonathan Kelcher: Great. Thanks for the color. Maybe one more from my end on, just on capital recycling. You've made good progress last year. Maybe if you could talk a bit about how you're feeling about the disposition environment for 2026, and maybe add a bit on the acquisition market and what you're seeing today, and maybe the pace we can expect to see for 2026.

Speaker #6: And maybe, if you could, add a bit on the acquisition market and what you're seeing today, and maybe the pace we can expect to see for 2026.

Speaker #7: Hey, Golden. It's Samantha Adams speaking. Yeah, we foresee a similar program as we rolled out in '25, 2025, and 2026, in terms of the dispositions.

Samantha Adams: Hey, Jonathan Kelcher, it's Samantha Adams speaking. Yeah, we foresee a similar program as we rolled out in 2025 and 2026 in terms of the dispositions. So we suspect levels will be similar or exceeding 2025. And then in terms of the acquisitions, we're not active today on the acquisition front. It's been relatively quiet, I would say, over the last couple of months, but we're always open to opportunities, but as of today, we're not actively pursuing anything.

Speaker #7: So we suspect levels will be similar to or exceeding 2025. And then, in terms of the acquisitions, we're not active today on the acquisition front.

Speaker #7: It's been relatively quiet, I would say, over the last couple of months. But we're always open to opportunities. But as of today, we're not actively pursuing anything.

Speaker #1: It's hard to compete with our stock buyback right now and the opportunity that we have with the exceptional value our stock represents, the 6.5% cap rates on a forward basis that we're trading at.

James Ha: It's hard to compete with our stock buyback right now-

Samantha Adams: Exactly

James Ha: and the opportunity that we have with the exceptional value our stock represents, the 6.5% cap rate on a forward basis that we're trading at. Our stock looks like a great place to be recycling capital into Boardwalk.

Speaker #1: Our stock looks like a great place to, to, to be recycling capital into, Golden.

Speaker #6: For sure. Appreciate the caller. I'll turn it back now. Thank you.

Jonathan Kelcher: Sure. I appreciate the color. I'll turn it back now. Thank you.

Speaker #4: Your next question comes from the line of Cy Ram Srinivas from ATB Capital Markets. Your line is now open.

Operator: Your next question comes from the line of Sairam Srinivas from ATB Capital Markets. Your line is now open.

Speaker #8: Thank you, Alberta. Good morning, guys. Just probably looking at your comment on new leasing spread, James, when you look at tenants moving out in the last couple of months now, are you seeing mainly them compete with these newer assets?

Sairam Srinivas: Thank you, operator. Good morning, guys. Just probably looking at your comment on new leasing spread, James. When you look at tenants moving out in the last couple of months now, are you seeing many of them compete with these newer assets? And when you are looking at your new leasing spread coming down, what are these competing assets like over there?

Speaker #8: And when you are looking at your new leasing spreads coming down, what are these competing assets like over there?

Speaker #1: Yeah. I mean, there is more availability in the marketplace at that upper end with deliveries. And again, this is across the country. We saw, because of the lower traffic in December and January, pretty well across the country, we saw lower volumes and lower guest cards, lower traffic, which, again, to maintain our high occupancy, there were great deals that we had provided to residents that moved in during those months.

James Ha: Yeah, I mean, there is more availability in the marketplace at that upper end with deliveries. And again, this is across the country. We saw, because of the lower traffic in December, January, pretty well across the country, we saw lower volumes and lower guest cards, lower traffic, which, again, to maintain our high occupancy, there was great, great deals that we had provided residents that moved in during those months. But the new competition, for the most part, we're seeing at our more expensive product within our portfolio; that's where we're seeing the most competition. In our more affordable product, again, that's where it remains fairly resilient, and we continue to see strong demand and strong occupancies and spreads there.

Speaker #1: But the new competition, for the most part, we're seeing at our more expensive product within our portfolio—that's where we're seeing the most competition.

Speaker #1: In our more affordable product, again, that's where it remains fairly resilient, and we continue to see strong demand and strong occupancies and spreads there.

Sairam Srinivas: That's, that's-

Speaker #8: That's, that's.

Speaker #1: I don't know if that answers your question. Sorry. Sorry.

James Ha: I don't know if that answers your question, Sairam, sorry.

Speaker #8: It, it does. It does. And 'cause I'm just thinking of it from the perspective of, you know, the higher-end units in the market right now coming down, competing because, I mean, tax incentives, I guess.

Sairam Srinivas: It does. It does. And because I'm just thinking of it from the perspective of, you know, the higher-end units in the market right now coming down, competing, because in thanks to incentives, I guess. Are you actually seeing a lot of these competing units being incentivized by the supply coming in?

Speaker #8: Are you actually seeing a lot of these competing units being incentivized by the supply coming in?

Speaker #1: Yeah, on a net rent basis, I mean, you see incentives in the marketplace. I mean, all you have to do is go to RentFast or Apartments.ca, and you can see, you know, one month, two months being offered in those newer products that are getting delivered.

James Ha: Yeah, on a net rent basis, I mean, you see, you see incentives in the marketplace. I mean, all you have to do is go to Rentfaster or rentals.ca, and you can see, you know, one month, two months being offered in those newer products that are getting delivered. Again, this is pretty well what we're seeing across the country. Good news in Alberta, Saskatchewan; specifically, we are seeing with the increased traffic with the spring rental season, that some of those buildings are pulling back. Even ourselves included, if I think of, you know, our 45 Railroad community in Brampton, we've had to provide some strong incentives and strong discount offerings over the winter months to obtain our full occupancy status that we have there. But getting to that full occupancy status allows us then to then pull back on those discounts.

Speaker #1: Again, this is pretty well what we're seeing across the country. Good news in Alberta and Saskatchewan specifically—we are seeing, with the increased traffic in the spring rental season, that some of those buildings are pulling back.

Speaker #1: Even ourselves included, if I think of, you know, our 45 Railroad community in Brampton, we've had to provide some strong incentives and strong discount offerings over the winter months to obtain our full occupancy status that we have there.

Speaker #1: But getting to that full occupancy status allows us, then, to pull back on those discounts. And so you're starting to see that in the new builds that have gone through absorption.

James Ha: And so you're starting to see that in the new builds that have gone through absorption. But it's really dynamic and fluid, though, Sai. I would say, again, we anticipate that upper end, that north of CAD 2000 price point, to continue to remain competitive.

Speaker #1: But it's, it's, it's really dynamic and fluid, though, Sy, I would say. Again, we anticipate that upper end, that north of $2,000 price point, to continue to remain competitive.

Sam Kolias: Sai, slide 46 on move-outs is pretty descriptive of what we're seeing. So quarter-over-quarter, we're seeing a drop in turnover. One of the reasons for moving out, which we're really pleased about, is the reason for cost. That's going down, as you can see, from 271 in Q4 move-outs because of cost, down to 191 due to cost. So the affordability is key, and we're seeing higher wages, inflation in wage pressure, settlements increase, and Stats Can updated the average wage as much higher, too. Our rents just aren't going up as fast anymore across the country.

Speaker #9: Sy, slide—sorry, it's Sam. And slide 46 on move-outs—it's pretty descriptive of what we're seeing. So, Q over Q, we're seeing a drop in turnover.

Speaker #9: And one of the reasons for moving out, which we're really pleased about, is the reason for cost. That's going down, as you can see.

Speaker #9: From 271 in Q4, move-outs because of cost, down to 191 due to cost. So the affordability is key. And we're seeing higher wages, inflation, and wage pressure, settlements increase, and StatsCan updated the average wage as much higher too.

Speaker #9: And our rents just aren't going up as fast anymore across the country. And so, you know, that affordability, that balance we're seeing in the marketplace, is very healthy.

Sam Kolias: And so, you know, that affordability, that balance we're seeing in the marketplace, is very healthy because an affordable housing market, and especially an affordable rental housing market, is mission critical to a solid economy.

Speaker #9: Because in the affordable housing market, and especially the affordable rental housing market, it is mission-critical to a solid economy.

Sairam Srinivas: I agree, Sam. I couldn't agree more, and thank you for that stat. Actually, that really helps. I'll turn it back. Thank you, guys.

Speaker #8: I agree, Sam. I couldn't agree more. And thank you for that stat, actually—that really helps. I'll turn it back. Thank you, guys.

Sam Kolias: Thanks, Sai.

Speaker #6: Thanks.

Speaker #4: Your next question comes from the line of Mike Mercedes from BMO. Your line is now open.

Operator: Your next question comes from the line of Mike Markidis from BMO. Your line is now open.

Speaker #10: Thanks, Alberta. Good afternoon, team. Boardwalk. I guess to clarify, on the dispositions, you expect to be as active, if not more active, this year?

Mike Markidis: Thanks, operator. Good afternoon, team Boardwalk. I guess, so you clarified on the dispositions you expect to be as active, if not more active this year. And then it sounds like you're going to lean more into the NCIB with proceeds this year. What's changed? Because last year you guys bought over CAD 500 million, and just looking at a stock chart, like, on a range bound basis, your stock was kind of at a similar level. So what makes it more attractive today than last year?

Speaker #10: And then it sounds like you're gonna lean more into the NCIB with proceeds this year. What's changed? Because last year, you guys bought over $500 million, and just looking at a stock chart, like, on a range-bound basis, your stock was kind of at a similar level.

Speaker #10: So, what makes it more attractive today than last year?

Speaker #1: Hey, Mike. It's James. I mean, for one, our earnings are about 10% higher already, versus this time last year. And we continue to see growth, as you can see in our guidance for 2026.

James Ha: Hey, Mike, it's James. I mean, for one, our earnings are about 10% higher already versus this time last year, and we continue to see growth, as you can see in our guidance for 2026. And so the yields on that continues to be higher. In addition to, I think from an acquisition standpoint, as Samantha had talked about, you know, we're looking for opportunities. We're always going to be open for opportunities, but, you know, we're also looking for those best deals as well. And so as of right now, and Samantha had shared, we haven't found that one yet. And with our cash flow model, we have capital and liquidity to invest every single day. And so right now, with what we're seeing, stock buyback looks like a great place to be allocating capital and proceeds from disposition.

Speaker #1: And so the yields on that continue to be higher. In addition to that, I think, from an acquisition standpoint, as Samantha had talked about, you know, we're looking for opportunities.

Speaker #1: We're always going to be open for opportunities. But, you know, we're also looking for those best deals as well. And so, as of right now, I mean, as Samantha had shared, we haven't found that one yet.

Speaker #1: And with our cash flow model, we have capital and liquidity to invest every single day. And so, right now, with what we're seeing, stock buyback looks like a great place to be allocating capital and proceeds from dispositions.

Speaker #4: Okay, and just to follow up on that, you guys obviously did a great job bringing down your leverage from an excess of 13 times to the current level of around 10.

Mike Markidis: Okay. And just to follow up on that, you guys obviously did a great job bringing down your leverage from in excess of 13 times to just the current level of around 10. Is that sort of considered to be the new normal going forward for Boardwalk? Absent a material change in your cost of equity? Just how are you guys thinking about that?

Speaker #4: Is that sort of considered to be the new normal going forward for Boardwalk? Absent a material change in your cost of equity, just how are you guys thinking about that?

James Ha: Hey, hey, Mike, it's James. The new normal for Boardwalk, which is declining Debt to EBITDA, is going to be the new normal. But at 10, that's, that's not our, that's not our goal. We continue to strive to reduce that Debt to EBITDA. And again, that naturally is going to happen because of our cash flow model, cash flow retention model, and cash flow growth model, for that matter. And so when you put those two together, we organically will continue to reduce that Debt to EBITDA. And look forward to, to, continuing to execute on that.

Speaker #1: Hey, hey, Mike. It's James. The new normal for Boardwalk, which is declining debt to EBITDA, is going to be the new normal. But at 10, that's—not our—that's not our goal.

Speaker #1: We continue to strive to reduce that debt-to-EBITDA. And again, that naturally is going to happen because of our cash flow model—according to our cash flow retention model, and cash flow growth model for that matter.

Speaker #1: And so, when you put those two together, we organically will continue to reduce that debt to EBITDA, and look forward to continuing to execute on that.

Speaker #4: Okay, thanks for that. And then just last one for me—you know, you guys have been able to push your turnover down; it keeps trending lower.

Mike Markidis: Okay. Thanks for that. And then just last one for me. You know, you guys have been able to push your turnover down, it keeps trending lower. You've got good visibility into the spring leasing season. So, from now, I guess, is there anything to suggest that turnover will continue to grind lower, it's going to stay stable, or in the spring, will we start to see that tick back up?

Speaker #4: You've got good visibility into the spring leasing season, so from now, I guess, is there anything to suggest that turnover will continue to grind lower?

Speaker #4: Is it going to stay, tick back up?

Speaker #1: Yeah. We'd like it to, to be lower, Mike. 'cause because as we know, in our in Alberta and Saskatchewan specifically, you know, our team does a great job with our, retention and balancing that turnover with spreads.

James Ha: Yeah, we'd like it to be lower, Mike, because as we know in Alberta and Saskatchewan specifically, our team does a great job with our retention and balancing that turnover with spreads and costs. As we look into the spring season, historically, you generally see a little bit of a higher turnover in the spring and summer months, which, you know, I would expect that, but overall, on a trend basis, year-over-year, we would aim to continue to lower that turnover on a year-over-year basis.

Speaker #1: And costs. As we look into the spring season, historically, you generally see a little bit of a higher turnover in the spring and summer months, which, you know, I would expect that.

Speaker #1: But overall, on a on a trend basis, year over year, we would, aim to continue to, to lower that turnover on a year over year basis.

Speaker #4: Okay, okay. That's helpful. Thanks. Congrats on a strong year. I'll turn it back.

Mike Markidis: Okay. That's helpful. Thanks. Congrats on a strong year. I'll turn it back.

Speaker #1: Thank you, Mike.

James Ha: Thank you, Mike.

Speaker #4: Your next question comes from the line of Kyle Stanley from Day Garden. Your line is now open.

Operator: Your next question comes from the line of Kyle Stanley from Desjardins. Your line is now open.

Speaker #11: Thanks. Morning, guys. Just kind of sticking with the commentary around spring leasing, can you quantify maybe the uptick in demand you're seeing so far into the spring, and how that may compare versus what you saw last year?

Sam Kolias: Thanks. Morning, guys. Just kind of sticking with the commentary around spring leasing. Can you quantify maybe the uptick in demand you're seeing so far into the spring and how that may compare versus-

Kyle Stanley: ... what you saw last year? And, you know, is there anything else driving it other than seasonality? Just trying to, you know, really understand the, you know, the confidence in really seeing the demand pick back up.

Speaker #11: And, you know, is there anything else driving it other than, than seasonality? Just trying to, you know, really understand, you know, the, the confidence in, in really seeing the demand tick back up.

Speaker #1: You know, we were looking at our guest cards, which is traffic. And when we look at guest cards, so far in the first 19 days of February, versus the first 19 days this time last year, we’re about bang on.

James Ha: You know, we were looking at our guest cards, which is traffic. And when we look at guest cards so far in the first 19 days of February versus the first 19 days this time last year, we're about bang on. And so, you know, that compares when we were looking at our guest cards for December and January, we were down about 20%, year-over-year. And so we have seen that pick up. We've asked our teams on the ground, is this, how does this feel, team? Is it more immigration? Is it pent-up demand? And, you know, from our team's perspective, so far, again, this is just what we're hearing from the ground, is a little bit of both.

Speaker #1: And so, you know, that compares when we were looking at our guest cards for December and January. We were down about 20% year over year.

Speaker #1: And so we have seen that pick up. We've asked our teams on the ground, is this—how does this feel, team? Is it more immigration?

Speaker #1: Is it pent-up demand? And, you know, from our team's perspective so far—again, this is just what we're hearing from the ground—it's a little bit of both.

Speaker #1: You know, when we look at our phone, our phone inquiries, we still continue to see a lot of, out 416, 905, 604 area codes calling into our sites.

James Ha: You know, when we look at our phone inquiries, we still continue to see a lot of 416, 905, 604 area codes calling into our sites. Certainly, weather plays a part of this, Kyle. You know, we had cold winters across the country in December. And so there is... That plays into that seasonality, but so far, so good. With what we're seeing in the first 19 days of February, again, I quoted earlier how much of our turnover has already been leased up. With what we're seeing right now, we do see some increased traffic and velocity heading into the spring.

Speaker #1: Certainly, weather plays a part in this, Kyle. You know, we had cold winters across the country in December, and so there is that—that plays into that seasonality.

Speaker #1: But so far, so good. With what we're seeing in the first 19 days of February—again, I quoted earlier how much of our turnover has already been leased up.

Speaker #1: With what we're seeing right now, we do see some increased traffic and velocity heading into the spring. And again, you know, our confidence on this comes from starting at close to 98% occupancy.

James Ha: And again, you know, our confidence on this comes from starting at close to 98% occupancy, and so we're not having to fill up at the same time. We really like being full heading into this busier season.

Speaker #1: And so we're not having to fill up at the same time. We really like being full heading into this busier season.

Speaker #11: Right. Okay. No, and that's, that's helpful and kind of brings me to my next question, I guess. Like, your ability to not have to fill up well also leasing, does that give you confidence that, you know, the, the negative five, percent new leasing spread, does that trend closer to flat as we, we get into the, the stronger months?

Kyle Stanley: Right. Okay, no, and that's, that's helpful and kind of brings me to my next question, I guess. Like, your ability to not have to fill up while also leasing, does that give you confidence that, you know, the, the -5% new leasing spread, does that trend closer to flat as we, we get into the, the stronger months? Or do you, do you expect new leasing spreads to maybe stay in, in the negative range for, for the bulk of the year?

Speaker #11: Or do you—do you expect new leasing spreads to maybe stay in the negative range for the bulk of the year?

Speaker #1: We are seeing improvement on it right now, as we speak. Again, that's in the first 18 days of February. And I'm quoting 18 because our data does lag a day or so.

James Ha: We're seeing improvement on it right now as we speak. Again, that's in the first 18 days of February. And I'm quoting 18 because our data does lag a day or so. But let's not forget that 75% of our deal flow comes from retention and renewals. And so you see the renewal spreads there. They remain positive. Again, we're negotiating 2, 3 months in advance already, and we're seeing consistent results there, and so retention is key in our markets. And so far, so good on that front as well, Kyle.

Speaker #1: But let's not forget that 75% of our deal flow comes from retention and renewals. And so you see the renewal spreads there—they remain positive.

Speaker #1: Again, we're negotiating two, three months in advance already, and we're seeing consistent results there. And so, retention is key in our markets. And so far, so good on that front as well, Kyle.

Speaker #11: Okay, no, appreciate that. And just one last one, just on your kind of higher-level outlook for market rent. I mean, it seems like most of the focus today is on, you know, the timing for positive rent inflection.

Kyle Stanley: Okay. No, appreciate that. And just one last one, just on your kind of higher level outlook for market rent. I mean, it seems like most of the focus today is on, you know, the timing for positive rent inflection. Just love your thoughts on, you know, when do you see that occurring? Is it a late 2026 event, or, you know, do you think that gets pushed into 2027? Just love your high-level thoughts.

Speaker #11: I just love your thoughts on, you know, when—when do you see that occurring? Is it a late ’26 event, or, you know, do you think that gets pushed into ’27?

Speaker #11: Just, just love your high-level thoughts.

Speaker #1: Yeah. High-level thought again, Jay—it's James here, Kyle. High-level, I think it depends on price point, it depends on product type, and so, again, as we talked about, we see the upper end of the rental market.

James Ha: Yeah, high-level thought. Again, James, it's James here, Kyle. High level, I think it depends on price point, and it depends on product type. And so again, as we talked about, we see the upper end of the rental market, so again, north of CAD 2,000 a month, remaining very competitive. Where there may be opportunity to see continued improvement in market rents, though remains in the more affordable product. And so, you know, communities where market rents are CAD 1,400, 1,500, 1,600 dollars, where affordability is so high, that's where we can see some market rent adjustments upwards. And you see that even in our own portfolio, Kyle. You know, if you look and segment by market, you can see that our more affordable markets are seeing market rent increases.

Speaker #1: So again, north of $2,000 a month, remaining very competitive. Where there may be opportunity to see continued improvement in market rents, though, remains in the more affordable product.

Speaker #1: And so, you know, communities where market rents are $1,400, $1,500, $1,600, where affordability is so high, that's where you—we can see some market rent adjustments upwards.

Speaker #1: And you see that even in our own portfolio. Kyle, you know, if you look and segment by market, you can see that our more affordable markets are seeing market rent increases.

Speaker #1: And in our more expensive markets and expensive product, that's where you've seen us adjust market rents. We see that trend continuing for 2026.

James Ha: In our more expensive markets and expensive product, that's where you've seen us adjust market rents. We see that trend continuing for 2026.

Speaker #11: Okay, appreciate the color. I will turn it back. Thanks.

Kyle Stanley: Okay. Appreciate the color. I will turn it back. Thanks.

Speaker #1: Thanks, Kyle.

James Ha: Thanks, Kyle.

Speaker #4: Your next question comes from the line of Mario Saric from Scotiabank. Your line is now open.

Operator: Your next question comes from the line of Mario Saric from Scotiabank. Your line is now open.

Speaker #12: Hi, good morning, guys. I just wanted to clarify—James, your comment on the expectation for consistent renewal spreads, would 'consistent' essentially be defined as kind of 3% to 4%, which is what you did in Q4?

Mario Saric: Hi, good morning, guys. I just wanted to clarify, James, your comment on the expectation for consistent renewal spreads. Would consistent essentially be defined as kind of 3% to 4%, which is what you did in Q4?

Speaker #1: Yes.

James Ha: Yes. Yeah, similar, you know, if we look at, you know, slide 10 there, portfolio-wide, you know, tracking in around the 3% to 4% range, we are looking for that to remain consistent through the spring.

Speaker #11: Yeah, similar, you know, if we look at, you know, slide 10 there, portfolio-wide, you know, tracking in right around the 3 to 4 percent range. We are looking for that to remain consistent through the spring.

Speaker #12: Got it. And where, where would you say—if you compare, let's say, your sub-$2,000 per month portfolio relative to the market, given you adopted the, you know, the gradual or the restrained rent increases over time—where would you characterize your kind of mark-to-market, or yeah, how much lower are you than peers in terms of your in-place rent today?

Mario Saric: Got it. And where would you say—like, if you compare, let's say, your sub-CAD 2000 per month portfolio relative to market, given you adopted the, you know, the gradual or the restrained rent increases over time, where would you characterize your kind of mark-to-market through your, yeah? How much lower are you than peers in terms of your in-place rent today in the affordable portfolio?

Speaker #12: In the affordable portfolio,

Speaker #1: You know, our market rents are, are fairly dynamic, and we're pricing those all the time. And so, you know, I, I, I know we get this, this qu-question regularly, but in, in non-price-controlled markets, I mean, it's, it is quite fluid.

James Ha: You know, our market rents are fairly dynamic, and we're pricing those all the time. So, you know, I know, I know we get this question regularly, but in non-price-controlled markets, I mean, it is quite fluid. So as we head into the spring rental season... Sorry, let me start with as of December, we feel that that Mark-to-Market, I think you can find it on slide 47, is fairly accurate for that point in time. So again, 31 December. And, you know, keep in mind that Mark-to-Market doesn't come from just new leasing. It also comes from renewals, as well.

Speaker #1: And so as we head into the spring, rental season, sorry, let me start with as of, as of December, we feel that that mark-to-market, I think you can find it on slide 47, is fairly accurate for that, for that point in time.

Speaker #1: So again, December—December 31st. And, you know, keep in mind that mark-to-market doesn't come from just new leasing; it also comes from renewals, as well.

Speaker #1: And so, as we head into this spring rental season, I think with the traffic we're seeing again in our more affordable product, as we talked about earlier, we see occupied rents continuing to increase.

James Ha: As we head into this spring rental season, I think with the traffic we're seeing, again, in our more affordable product, as we talked about earlier, we see occupied rents continuing to increase. But we also see market rents continuing to increase in those, in that more affordable product. And so, you know, to quantify it, Mario, I think, you know, that slide does a pretty good job of it at that point in time. If I had to guess what that's going to look like for 31 March, so I think you're going to see occupied rent increase because the majority of our portfolio remains in that affordable bucket. And I think you see market rents increase a little bit in, in that more affordable segment, which again, represents the majority of our portfolio.

Speaker #1: But we also see market rents continuing to increase, and though in that more affordable product. And so, you know, to quantify it, Mario, I think, you know, that slide does a pretty good job of it.

Speaker #1: At that point in time, if I had to guess what that's gonna look like for March 31st, I think you're gonna see occupied rent increase because the majority of our portfolio remains at an affordable bucket.

Speaker #1: And I think you see market rents increase a little bit in that more affordable segment, which, again, represents the majority of our portfolio.

Speaker #12: Got it. Okay. And then, just switching from our last question—within the guidance, you mentioned there's no dispositions included. To the extent that you were to kind of hit your target on dispositions for the year, based on, I guess, the in-place debt profile—

Mario Saric: Okay. And then, just switching, for my last question. Within the guidance you mentioned, there's no dispositions included. To the extent that you were to kind of hit your target on dispositions for the year, based on, I guess, the implied debt profile. If you were to hit your target and redeploy the proceeds into your NCIB, would that be FFO accretive, or kind of neutral or dilutive?

Speaker #12: If you were to hit your target and redeploy the proceeds into your NCIB, would that be FFO accretive, kind of neutral, or dilutive?

Speaker #12: In your view.

Speaker #1: Hey, Mario. It's James. It would be accretive, subject to timing. And so that math is—that math is simple, right? I mean, you can see it even with this Montreal disposition, proceeds from January, where we're selling non-core communities at under a 5 cap.

James Ha: Hey, Mario, it's James. It would be accretive, subject to timing. And so that math is, that math is simple, right? I mean, it's, you can see it even with this Montreal disposition proceeds from January, where we're selling non-core communities at under a 5 cap. We're turning around and buying back stock at 6.5. That math, maths, subject to timing, of course. And so, our note on the disposition side is really just going to be subject to, you know, how quickly we can redeploy proceeds, which, you know, as more dispositions come through in the year, we'll provide an outlook and a view on that, when that time comes.

Speaker #1: We're turning around and buying back stock at six and a half. That math, math's, subject to timing, of course. And so, our note on the disposition side is really just going to be subject to, you know, how quickly we can redeploy proceeds, which, you know, as more dispositions come through in the year, we'll provide an outlook and a view on that when that time comes.

Speaker #12: Yeah, yeah. Okay. That was just a, a, a thinking more along the lines of a, like, of an FFO yield, without kind of understanding what the debt profile of the potentially disposed assets could be.

Mario Saric: Yeah. Okay. I was just, I was thinking more along the lines of a, like, of an FFO yield, without kind of understanding what the debt profile of the potentially disposed assets could be, but it sounds like it would also be accretive from that perspective.

Speaker #12: But it sounds like it would also be accretive from that perspective.

Speaker #1: Yeah, on a levered basis, FFO yield is a metric that we look at as well, Mario. And, of course, it depends on the assets that we're disposing of and what that leverage profile looks like, which is very unique from a community to community.

James Ha: Yeah. On a levered basis, FFO yield is a metric that we look at as well, Mario, and of course, it depends on the assets that we're disposing of and what that leverage profile looks like, which is very unique from a community to community. But yes, you hit it bang on. Our view in terms of disposing non-core assets, that FFO yield and the alternate place where we can redeploy that capital is a huge consideration on our part as well.

Speaker #1: But yes, you pinned it bang on. Our view, in terms of disposing of non-core assets, that FFO yield and the alternate place where we can redeploy that capital is a huge consideration on our part as well.

Speaker #12: Okay.

Mario Saric: Okay.

Speaker #1: And our expectation is—sorry. And yes, Mario, sorry—our expectation is that recycling is accretive. Thank you.

James Ha: Sorry, and yes, Mario, sorry. Our expectation is that recycling is accretive.

Mario Saric: Thank you.

James Ha: Thank you.

Speaker #4: Your next question comes from the line of Matt Cornack from National Bank Financial. Your line is now open.

Operator: Your next question comes from the line of Matt Kornack from National Bank Financial. Your line is now open.

Speaker #13: Hey, guys. I'm just going back to the Montreal disposition. A, was there a mortgage in place on those two properties? And if so, kind of where were the interest rates?

Matt Kornack: Hey, guys. Just going back to the Montreal disposition. A, was there a mortgage in place on those two properties? And if so, kind of where were the interest rates? And then that product pulled probably a little bit more challenging to manage, but is affordable, presumably. So how do you make the differentiation between what affordable you want to own versus what you're disposing of at this point?

Speaker #13: And then, that product—while probably a little bit more challenging to manage—but it is affordable, presumably. So, how do you make the differentiation between what affordable you want to own versus what you're disposing of at this point?

Samantha Adams: Hey, Matt, it's Samantha Adams speaking. Yeah, the debt on the two Montreal assets was about just under CAD 23 million, at a rate of just under 4%. I think it's about 3.9%.

Speaker #2: Hey, Matt. It's Samantha Adams speaking. Yeah, the debt on the two Montreal assets was just under $23 million at a rate of just under 4%. I think it was about 3.9%.

James Ha: 3.9, yeah.

Speaker #2: Yeah.

Speaker #1: Yeah.

Samantha Adams: Yeah.

Speaker #11: Yeah.

James Ha: Yeah.

Speaker #13: And then just in terms of—yeah, just how you think about it, I mean, that product I looked at, it's got some rent sub $1,000, granted.

Matt Kornack: Yeah, just how you think about, I mean, that product I looked at, it's got some rents of CAD 1,000. Granted, that may not be affordable necessarily for the tenant type that would occupy those properties. But how do you kind of look at affordability and what you want to keep asset-wise versus what is non-core from a disposition standpoint?

Speaker #13: That may not be affordable, necessarily, for the tenant type that would occupy those properties. But how do you kind of look at affordability, and what you want to keep asset-wise versus what is non-core from a disposition standpoint?

Speaker #2: Oh, I... okay. Got it. You know, affordability sort of envelopes every decision we make on the acquisition side and on the disposition side. We are all about providing affordable homes.

Samantha Adams: Oh, okay. Got it. You know, affordability sort of envelops every decision we make on the acquisition side and on the disposition side. We are all about providing affordable homes to our resident family members. But in terms of decisions, whether or not we dispose of a property, affordability would play a part of it, but it also stems from other factors. There may be capital requirements. The building may no longer allow our incredible experienced team to amend or renovate the property to deliver the type of experience we want to deliver to our resident members. And it also provides a really cost-effective source of cash flow for us. So, which we can then redeploy into whether it's our NCIB or ultimately back into new acquisitions.

Speaker #2: To our resident family members, in terms of decisions—whether or not we dispose of a property—affordability would play a part in it.

Speaker #2: But it also stems from other factors. There may be capital requirements. The building may no longer allow our incredible experience team to amend or renovate the property to deliver the type of experience we want to deliver to our resident members.

Speaker #2: And it also provides a really cost-effective source of cash flow for us, which we can then redeploy into whether it's our NCIB or ultimately back into new acquisitions.

Samantha Adams: It is a really, really strong use of or source of cash flow for us.

Speaker #2: It is a really, really strong use of our source of cash flow for it.

Speaker #13: Okay, makes sense. You mentioned, I think, that a portion of your growth is going to come from renewal rates in Quebec. They've been elevated for the last two years.

Matt Kornack: Yeah, makes sense. You mentioned, I think, that a portion of your growth is going to come from renewal rates in Quebec. They've been elevated for the last two years. The new rent control regime there, I think, favors kind of investment in the properties. Presumably, you're already investing, so is it just the ability to capture a percentage of that CapEx that you're spending in the properties, that you think you'll get that excess renewal increases?

Speaker #13: The new rent control regime there, I think, favors investment in the properties—presumably, you're already investing. So is it just the ability to capture a percentage of that CapEx that you're spending in the properties, that you think you'll get that excess renewal increases?

Speaker #1: We do, Matt. We see a continuation of that for 2020. Our team has invested in our Quebec portfolio—we continue to. And we were very happy to see the acknowledgment for those capital improvements, and to keep communities affordable in Quebec.

James Ha: We do, Matt. We see a continuation of that, for 2020. Our team has invested in our Quebec portfolio. We continue to, and we were very happy to see the acknowledgment for those capital improvements and to keep communities affordable in Quebec. And so, we do expect elevated adjustments for our Quebec portfolio relative to the overall guideline.

Speaker #1: And so, we do expect elevated adjustments for our Quebec portfolio relative to the TALS guideline.

Speaker #13: Okay, and then, on Calgary, I know you gave a broader view as to how you see things evolving. But for that market in particular, it seems like it's more supply again. Like, the population growth is pretty good in Calgary.

Matt Kornack: Okay. And then, on Calgary, I know you, you gave a broader view as to how you see things evolving. But for that market in particular, it seems like it's more supply again, like the population growth is, is pretty good in Calgary, but it seems to be a more difficult or competitive environment, jurisdiction at this point. What do you think the time horizon is for kind of supply absorption and, an improvement in that market from a market rent standpoint?

Speaker #13: But it seems to be a more difficult or competitive jurisdiction at this point. W-what do you think the time horizon is for kind of supply, absorption, and improvement in that market from a market rent standpoint?

Speaker #1: Yeah, you know, Matt, Calgary has benefited, and continues to benefit, from population growth for all the reasons that, you know, we've talked about at length over the past many, many years.

James Ha: You know, Matt, Calgary has benefited and continues to benefit from population growth for all the reasons that, you know, we've talked about at length over the past many, many years. We've invested heavily in our portfolio, and our average rents in Calgary, as a result of those, you know, is CAD 1,900. So it's very close to that mark that we were talking about earlier. And so, you know, we are in that competitive segment within our own portfolio. We are seeing continued supply deliveries from communities that went under construction two, three years ago. But as we're seeing in other parts of the country, you know, economics matter and peak development economics have come and gone.

Speaker #1: We've invested heavily in our portfolio, and our average rents in Calgary, as a result of those—you know, it was $1,900. It's very close to that mark that we were talking about earlier.

Speaker #1: And so, you know, we are in that competitive segment within our own portfolio. We are seeing continued supply deliveries from communities that went under construction two, three years ago.

Speaker #1: But as we're seeing in other parts of the country, you know, economics matter and development economics—peak development economics—have come and gone. And so, you know, we would anticipate the under-construction numbers and the number of projects that are starting to start to taper.

James Ha: And so, you know, we would anticipate the under construction numbers, and the number of projects that are starting to taper. But here in Calgary, because we have population growth, we do need that new supply. And fortunately, you know, again, in Calgary, we are seeing a pretty good balance. We continue to see strong retention within our Calgary portfolios. We continue to prioritize that occupancy. I would anticipate, you know, we are starting to lap that period of time where we saw more balance in Calgary, and so we could see some stabilization in terms of where those market rents are. But again, that's all gonna be subject to: What does the immigration profile look like? You know, what are we doing with immigration across Canada?

Speaker #1: But here in Calgary, because we have population growth, we do need that new supply. And fortunately, you know, again, in Calgary, we are seeing pretty good balance.

Speaker #1: We continue to see strong retention within our Calgary portfolios. We continue to prioritize that occupancy. I would anticipate, you know, we are starting to lap that period of time where we saw more balance in Calgary.

Speaker #1: And so you are, we could see some stabilization in terms of where those market rents are. But again, that's all going to be subject to what the immigration profile looks like.

Speaker #1: You know, what are we doing with immigration across Canada? We still think Alberta is going to win, relative to other places, because of the low taxes, the affordable housing, all the things, again, we've talked about in the past.

James Ha: We still think Alberta is going to win relative to other places because of the low taxes, the affordable housing, all the things, again, we've talked about in the past. But, you know, again, are we, are we going to see more permanent residents in the country? Are we going to see more non-permanent residents in the country? And that'll help define, not just for Calgary, but frankly, across the country, what rental rates are gonna look like in the short to medium term.

Speaker #1: But, you know, again, are we—are we going to see more permanent residents in the country? Are we going to see more non-permanent residents in the country?

Speaker #1: And that'll help define, not just for Calgary, but frankly, across the country, what rental rates are gonna look like in the short to medium term.

Matt Kornack: Okay. Makes sense. And then last operational one for me. You've done exceptionally well on NOI margins. I think you troughed at 51% in 2017 on a trailing basis. You're up to 65%. That's ahead of where you would have been kind of pre-oil correction. It sounds like your costs and your revenues are gonna track each other, but do you think that's done in terms of margin expansion? Is there a structural ceiling or is there a little bit more to push on the margin front at this point?

Speaker #13: Okay, makes sense. And then, last operational one for me: you've done exceptionally well on NOI margins. I think you troughed at 51% in 2017 on a trailing basis.

Speaker #13: You're up to 65%. That's ahead of where you would've been, kind of, pre-oil correction. It sounds like your costs and your revenues are gonna track each other.

Speaker #13: But, but do you think that's done in terms of margin expansion? Is there a structural ceiling, or is there a little bit more to push on the margin front at this point?

Speaker #1: Definitely more to push, Matt. I mean, it's a goal that we've communicated to all of our stakeholders that, you know, margin improvement is a big one for us.

James Ha: Definitely more to push, Matt. I mean, it's a goal that we've communicated to all of our stakeholders that, you know, margin improvement is a big one for us. We still see a path through it. I know we gave ranges for that, but, you know, our team is doing a good job on controlling what we can control, in addition to, on some of our expense items like utilities, as an example, we have, as we've talked about in the past, started to shift that consumption, or pardon me, that expense to our residents who are actually the ones consuming that. And so that's helping keep rents low, it's helping us improve our operating margins, and it's helping us reduce overall consumptions within our portfolio, which is a win-win-win scenario.

Speaker #1: We still see a path through it. I, I know we gave ranges for that, but, you know, our team is doing a good job on controlling what we can control, in addition to, on some of our expense items like utilities, as an example.

Speaker #1: We have, as we've talked about in the past, started to shift that consumption—or pardon me, that expense—to our residents, who are actually the ones consuming that.

Speaker #1: And so that's helping keep rents low. It's helping us improve our operating margins. And it's helping us reduce overall consumption within our portfolio, which is a win-win-win scenario.

Speaker #1: And so, as we look forward, Matt, you know, I think we're just getting started on the margins. We are aiming and building strategies and approaches to continue to improve that going forward.

James Ha: And so as we look forward, Matt, you know, I think we're just getting started on the margins. We are aiming and building strategies and approaches to continue to improve that going forward.

Speaker #13: Okay. Thanks. Just as an update, we didn't hear any cheers on the call, so just wanted to let you know, as proud Albertan Canadians, that Team Canada pulled out the win in hockey.

Matt Kornack: Thanks. Just as an update, we didn't hear any cheers on the call, so just wanted to let you know as proud Albertan Canadians that Team Canada pulled out the win in hockey, so have a good afternoon, guys.

Speaker #13: So, have a good afternoon, guys.

Speaker #1: Thanks, Matt.

James Ha: Thanks, Matt.

Speaker #2: Thank you for that.

Samantha Kolias-Gunn: Thank you for that. And congratulations-

Speaker #1: And congratulations to Team Canada.

Matt Kornack: There are no further-

Samantha Kolias-Gunn: to Team Canada.

Speaker #13: There are no further questions at this time. I will now turn the call back to Sam Kolias, Chief Executive Officer. Please continue.

Operator: There are no further questions at this time. I will now turn the call back to Sam Kolias, Chief Executive Officer. Please continue.

Speaker #14: Thank you, John. As always, if there are any further questions or comments, please do not hesitate to contact us. With gratitude, we'd like to thank our entire team that puts in the extra and ordinary day in and day out.

James Ha: Thank you, John. As always, if there are any further questions or comments, please do not hesitate to contact us. With gratitude, we'd like to thank our entire team that puts the extra in ordinary day in and day out. Our team is truly extraordinary. Thank you, loyal family residents, CMHC, our lenders, partners, and of course, our unitholders from far and wide and local. It really is all about our BFF, our Boardwalk Family Forever, whose huge shoulders we stand, and as leaders, we continue to do everything we can to support continued growth and extraordinary. We can't thank our extraordinary team and great leaders enough. We are pleased with our improving results on a foundation of exceptional value, service, and experience we continue to provide our resident family members, our investors, and all our stakeholders.

Speaker #14: Our team is truly extraordinary. Thank you. Loyal family residents, Seamate C, our lenders, partners, and, of course, our unit holders from far and wide and local.

Speaker #14: It really is all about our BFF, our Boardwalk Family Forever—whose huge shoulders we stand on—and as leaders, we continue to do everything we can to support, continued growth, and extraordinary... we can't.

Speaker #14: We cannot thank our extraordinary team and great leaders enough. We are pleased with our improving results on a foundation of exceptional value, service, and experience. We continue to provide for our resident family members, our investors, and all our stakeholders.

Speaker #14: We conclude home is where our heart is, our heart is where our family is, and our family is where love always lives. Our occupied rent averaged $1,590.

James Ha: We conclude home is where our heart is, our heart is where our family is, and our family is where love always lives. Our occupied rent average, CAD 1,590. Our love always, priceless. Welcome home to Love Always. Our future is Boardwalk Family Forever. What can be more important when choosing where to call home? Well, we heard from Matt, maybe a Canada men's gold medal, but you know, maybe not more important, but it is really high up there. And again, congratulations to our Canadian men's hockey team for winning gold. God bless us, and now more than ever, grant us all peace, our greatest prize of all.

Speaker #14: Our love is always priceless. Welcome home to love, always. Our future is Boardwalk Family forever. What can be more important when choosing where to call home?

Speaker #14: Well, we heard from Matt—maybe a Canada men's gold medal. But, you know, maybe not more important, but it is really high up there.

Speaker #14: And again, congratulations to our Canadian men's hockey team for winning gold. God bless us. And now, more than ever, grant us all peace—our greatest prize of all.

Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.